Too often, ERPs start with a good business case and well-defined business benefits, but as system development drags into multiple years, it often takes on a life of its own. Getting a functioning system up and running becomes the end instead of being the means to achieve the initially outlined benefits and business case.
Avoid this trap by ensuring your executive leadership drives the establishment and reporting of key business and operational benefit metrics in the early stages of the ERP. Managers will be more likely to adopt the ERP when they see how it benefits their area of the business. Likewise, end users and customers will be more likely to embrace the ERP when they see the system “payback” in action.
Every ERP effort encounters those who criticize the “ditching” of seemingly sound legacy processes and the time and effort it takes to adopt a system with (usually) limited initial functionality. The critics may ask, “Why are we adopting a system that can’t give us everything we need?”
The truth is that “perfection” isn’t realistic in any ERP effort constrained by money and time. However, a functional and actionable system is achievable if the program is properly scoped, resourced and led. The solution is simple: Executive leadership must convey and reinforce the message of positive change early and often as part of the overall program governance and change management.
Many organizations limit an ERP’s scope in the initial business case to meet a budgeted target or limit overall costs. However, this approach invariably leaves out critical functionality that the organization needs to achieve the full promise of the system and/or significantly improve other business processes and operations.
Executive leadership must understand that additional development and implementation costs are almost certain to come if the initial system scope is deliberately constrained, especially if done so as a budget/cost exercise.